The Suburbs Are Not Dead

LOS ANGELES—While everyone within earshot is talking about millennials migrating out of the suburbs and into core urban markets, Gary Steinhardt, senior director in the investment group at American Realty Advisors, says that there are still plenty of multifamily opportunities in suburban markets. Steinhardt is speaking on the Shift of Capital: Identifying Opportunities in Alternative Markets panel at the upcoming RealShare Los Angeles conference on March 19, along with Jilliene Helman, founder and CEO of Realty Mogul; Paul Rahimian, owner of Parkview Financial; and Noah Streit, president of Streit Lending.

“All the pundits have been telling us for years that the suburbs are dead—that millennials only want to live in tiny-units in urban, walkable, amenity-rich areas,” Steinhardt tells GlobeSt.com. “We have taken a slightly contrarian view and continued to believe that thoughtfully renovated larger units in suburban locations can perform extremely well over the longer-term. We have recently invested in growing areas such as Playa Vista but we have also acquired more style suburban that can provide a little more yield since they have been out of favor. Ultimately, it’s about capital flows—when mountains of capital are following the predictions of the major research organizations, it’s wise to diverge from the crowd and look where others are not.”